“Do I really need title insurance?”
When you purchase a home there are many things to consider such as the mortgage payment, interest, homeowners insurance, closing costs and title insurance. The paperwork can be daunting so when home buyers see the word “optional” next to an Owner’s Title Insurance Policy, they wonder if that is something they really need. Is title insurance really necessary? Is it worth the extra expense?
The answer is YES!
We highly recommend an owner’s title insurance policy to protect your rights. If you’re taking out a mortgage, your lender will require one to protect their rights. When you purchase title insurance, you’ll have protection for your property rights for as long as you own your home. It may be tempting to save a few thousand dollars off the closing costs but many in the real estate industry advise against it. This one-time, relatively low premium insures that you are protected against legal problems regarding property rights.
H&H Settlement Services has seen buyers who have opted out of title insurance only to run into legal problems that are very expensive to remedy. The money you will save is far less than the legal fees and the potential loss of your home.
Here are some issues that could lead to big problems and potentially big legal expenses in order to defend your rightful ownership of the property.
- Incorrect filing of deeds
- Forgery
- Fraud in the execution of documents
- Delivery of deeds after the death of a grantor
- Undue influence on a grantor of a deed
- Error in property surveys
- Transfer of title by a minor
- Wills not properly probated
- Confusion due to similar or identical names
- Deeds executed under expired or false powers of attorney
- False impersonation by someone purporting to be the owner of the property
- Clerical errors in recording legal documents
- Misinterpretation of wills and trusts
- Undisclosed or missing heirs
H&H Settlement is in the business of protecting you on the biggest financial decision you will probably ever make. Dollar for dollar, purchasing an owner’s title insurance policy is the most cost efficient form of insurance to protect your home from the unknown.
The best news is you only pay once to reap the benefits for a lifetime! Even if you refinance your mortgage, your owner’s title insurance policy remains in effect as long as you own the home.
